Sweden’s krona has been in the cold lately. (Photo: Matthew Henry / Unsplash)

Weak SEK could keep sliding

A one-year slump has seen the Swedish krona go from weak to weaker. And it could lose another 0.15 SEK to the euro if inflation continues to deviate from central bank forcasts, predicts Swedbank’s chief economist Anna Breman.

According to an interview on SvD Näringsliv, Anna Breman, chief economist of Swedbank sees notable risk that the krona continues its losing streak against other currencies.

”Negative data hit against the krona, and the effect is permanent,” she says.

Got worse

Only hours after the publication of the interview Tuesday morning, Anna Breman was partially proven right. Monthly inflation figures for February came in 0.5 percent lower than forecasted, at 1,9 percent as opposed to Riksbanken’s expected 2.4 percent. This sent the Euro up 0.02 SEK immediately.

ANNONS

ANNONS

Out of the 140-something currencies which are traded against the Euro, only a handful have performed worse than the Swedish krona this year, notes SvD Näringsliv.

Approaching record low

As a ten year xe.com graph for the EUR/SEK pair shows, the Euro is somewhat above 10.55 SEK at the time of writing. This follows a generally steady six-year increase against the krona, after a turning point near 8.20 SEK in 2012. It means that the price of the Euro in SEK is now approaching the levels above 11 SEK which were temporarily seen in the 2009, i.e. in the post-Lehman financial crisis.

Against the US dollar, the krona is at its weakest level since 2002, making a dollar currently move around 9.40 SEK.